Constellation, Anheuser-Busch Rise After DOJ Deal Reported

By Sam Mamudi

Shares of Constellation Brands (STZ) and Anheuser-Busch InBev (BUD) are up 2% and 1.8%, respectively, this morning after news that the Justice Department has agreed to a reworked plan for the acquisition of Grupo Modelo:

The U.S. has been reviewing Constellation’s plan to boost brewing capacity at the Piedras Negras plant by about 70 percent to ensure that Modelo-brand products remain viable competitors in the U.S. beer market, two people familiar with the matter said March 8.

Under the revised deal, AB InBev, which is based in Leuven, Belgium, also gave up an option to buy back a stake in Crown Imports LLC, the U.S. distributor of Corona and the other Modelo brands. As part of the plan, Crown, owned jointly by Mexico City-based Modelo and Victor, New York-based Constellation, would be entirely owned by Constellation.

Bloomberg cites two unnamed sources as saying a consent decree will be filed in court today. The original plan was blocked by the government on fears that AB InBev would have had too much control of the U.S. beer market.

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